Molina buys mental health providers

Molina Healthcare, a Medicaid managed care organization, has announced plans to acquire two behavioral health subsidiaries of Providence Service Corporation for approximately $200 million. The deal provides further evidence of the industry trend whereby managed care companies are melding with provider organizations.

Providence Human Services, LLC (PHS) and Providence Community Services, LLC (PCS), provide community-based behavioral and mental health services in 23 states and the District of Columbia. Founded in 1997, PHS generated revenue of approximately $346 million for 2014 and has more than 8,000 employees. Adult and youth services are offered by therapists and paraprofessionals under the direct supervision of licensed clinicians.

“The PHS and PCS platforms, coupled with their extensive experience in Medicaid, will enable us to complement our health plan offering with behavioral and mental health and other services that focus on social determinants of health,” said J. Mario Molina, MD, president and CEO of Molina Healthcare, in a statement. “Providing access to these types of quality services is imperative, as we increasingly arrange for healthcare services for patients with complex needs.”

Molina serves approximately 3.4 million health-plan members in 11 states.